New Ford cars are slow to catch on in U.S.

[ragingfish]

Quote »New Ford cars are slow to catch on in U.S.Analysts question success of models auto firm is banking onDETROIT - Ford Motor Co.’s new vehicles have yet to meet targeted sales volumes, compelling analysts to question the success of models the automaker is banking on to stem its bruising U.S. market-share losses.The second-largest U.S. automaker hopes to sell more than 200,000 of the new Five Hundred and Montego sedans, and the Freestyle wagon this year. But four months after their launch, the annual selling rate for the three cars built at Ford’s Chicago assembly plant is only 167,000.Rod Lache, an analyst at Deutsche Bank, said a bullish case on Ford — that new products would drive improvement in market share, vehicle mix and pricing — is losing steam.“The trends on mix and share have been running counter to those assumptions, implying downside risk to earnings expectations,” Lache said in a recent note to clients.Ford’s new vehicles are central to its strategy for boosting U.S. market share and increasing much-needed automotive profit.The automaker had dubbed 2004 the “year of the car,” but the new cars arrived at dealerships too late in the year to stop Ford’s car sales from dropping 14.3 percent in 2004.Ford ended last year with a U.S. market share of 18.3 percent, the lowest in more than three decades.To reach the targeted selling rate for the new models, Ford needs to increase sales of Five Hundred, Freestyles and Montegos by 55 percent to at least 17,000 in February from 10,921 last month. U.S. sales of the cars increased 5 percent from December to January.“Investors remain highly skeptical about the Chicago products,” Merrill Lynch analyst John Casesa said in a recent note to clients.Ford still optimisticFord executives, however, are still optimistic about the vehicles.“By some time this spring, we might reach our annual [selling] rate of 200,000,” George Pipas, Ford’s chief sales analyst, told Reuters.The challenge for Ford, he said, was to convince consumers they can buy sedans at its dealerships, and not just noteworthy pickup trucks and sport utility vehicles.One large Ford dealer in Texas said he saw a huge pickup in sales for the new vehicles in January, particularly for the Five Hundred.“If you can get someone to drive the Five Hundred, our closing ratio is the best I have seen on any car,” said Jerry Reynolds, owner of Prestige Ford, who sold 20 of the large sedans last month.Another Ford dealer in California, however, said sales have yet to take off.“They are moving very slowly,” said Paul Malaty, general sales manager of Ford West in Bellflower, California. “Not many people are asking about it.”Some analysts say the new models, which compete in a market heavily dominated by Asian automakers, fail to make an impression on consumers because of their conservative styling.By comparison, the boldly styled 300 sedan from Chrysler was dubbed a hit right off the mark when it was launched in April. Strong sales of the 300, which features a giant egg-crate grille, helped Chrysler increase its U.S. market share last year.But JP Morgan analyst Himanshu Patel said that while heavy volumes continue to be elusive for the new cars, he was encouraged that Ford is managing to sell them without cash incentives to mostly retail customers.http://msnbc.msn.com/id/6953362/

[Raven]

The new Ford cars are sleepers, literally. At least they have the Mustang and the Lincoln LS to keep buyers awake.

[redlava]

Some analysts say the new models, which compete in a market heavily dominated by Asian automakers, fail to make an impression on consumers because of their conservative styling.I think they said it here best. Ford cars have always been boring. Their few interesting concepts just get thrown away and they just take the most bland "safer" style and go with that. Just recently have they begun to get people interested with their GT, GT40, and Cobra concepts. But with those being $80,000 + very few will buy them. I think they are still kinda reeling from the Thunderbird. There was a car that they thought everybody was interested in and had high expectations for, but very few people bought it. They need to come out with their "Vibe" or "PT Cruiser" or "300" a car that has different styling than everything else on the road that everybody can afford. It just seems like they are completely unwilling to take a risk now and again. Whatever happened to the '49 concept? Maybe they should just start importing some Aussie Fords or something.

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[ragingfish]

I find it ironic that, the original Focus design, which just got replaced, was 10 times less boring then the new Focus. They took a step backwards.

[MJN2]

All of my cars were Ford or Mercury prior to the Vibe.I agree with what a lot of people are saying here. Ford has gotten BORING with their car designs. The new Mustang being the exception. Plus, they are severely lacking in the horsepower department when compared to other manufacturers.As an example, why would I want to spend $30k or so on a 210hp, 6 cylinder Freestyle wagon (which looks boring too), when I can walk across the street and spend the same amount of money on a 340hp Magnum RT? (the Ford and Dodge dealers in my town sit directly across from each other)Ford needs to get their collective heads our of their asses, IMO.

[kostby]

"Just keep making them pickup trucks & ESS-YOU-VEES until everyone on earth owns one," seems to be the current Ford mantra.Ford can't win on styling. If it's bland, it's 'too bland.' If it's edgy, it's 'too edgy.'The only current 'vision' for Ford styling that's even moderately successful seems to be 'retro,' hence the 1967.2005 Mustang and the 1965.2005 GT40.Ford took a huge risk with the drastic restyling of the (Chicago-manufactured) 1996 Taurus. Also known as the 'symphony of ovals' (I expressly chose one of the nicer terms reported in the press), both interior and exterior used an extraordinary number of ovals in the design. (Yes, I own one, and I love it.)The 1996 Taurus styling was dubbed 'too futuristic' in the automotive press and it didn't sell well. It was one of the primary reasons Ford fell way-way out of a close 3-way race with Accord and Camry for best-selling (FWD) domestic sedan in the late 1990's.What did Ford do? They gradually toned down the Taurus styling over the next several years and gradually abandoned the oval theme, particularly for the interior. The Cougar (marketed as a Ford in Europe) was supposed to reflect the next edgy Ford styling direction. It basically flopped, too. The euro-designed Focus kept some of the Cougar edginess, (especially in the 2-door with high-mounted taillights, and) with sharp triangle-shaped headlights, but, again, Focus styling was toned down with the 2004 and 2005 models.Ford apparently doesn't have anyone on the design team with enough power or guts to determine an overall post-modern theme for the Ford family of vehicles, implement it, and then stick with it for a few years.

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[MJN2]

Quote, originally posted by kostby »The Cougar (marketed as a Ford in Europe) was supposed to reflect the next edgy Ford styling direction. It basically flopped, too.This was the car I owned prior to the Vibe. There were a couple of things that bugged me about it, but otherwise I loved it. The exterior design of it is what I liked the most, oddly enough. It had a pretty decent aftermarket part supply too. Had Borla catback dual exhaust on mine My mom just got a new ZX3 Focus on Saturday. Replaced the Focus wagon that the lease was up on. I like the front end on the wagon better, that's for sure.